Which Company Has the Lowest Cost of Car Insurance in Memphis?

The population of Memphis, Tennessee is 651,073. Its one of those few American cities where some of the population has moved away, the number used to be 651,873 in 2010.

The mean travel time to work in minutes is 21.7; because most employees from 16 years of age and up are driving, this may cause congested roads. The miles that people put onto their cars annually does have an impact on annual insurance premiums in the area. The more time spent in a vehicle, the more likely there is to be an accident. Accidents, vehicle thefts, and unanticipated events such as tornadoes or other violent storms, will also affect premiums.

As large as Memphis is, this means that citizens are going to drive several miles a day to get from home to work or to the store or other destinations, such as daycare or their children’s school. In single-vehicle households this number is around five hours a day in Memphis. For 2-vehicle households, it’s closer to 10, and that’s just for work. Knowing that, people also need to understand that their insurance premiums are based in part on their annual mileage. That’s why you see the question, “How many miles, on average, do you put on your vehicle in one calendar year?” when you ask for a quote. If your answer is over 15,000 miles, you may see a larger premium.

It isn’t only mileage. Accidents, property damage, or injuries can affect insurance premiums. Unanticipated events, theft, broken windows, and falling trees or tree limbs, can lead to the loss or damage of the vehicle. All of this is important to the insurance company, so that they can assess the risks in your area.

How Much Car Insurance Coverage Do I Need in Memphis

In Tennessee, the Financial Responsibility Law says that, as a driver, you have to have financial responsibility should you be involved in an auto accident. This is the reason for everyone to have auto insurance. Beginning in 2017, vehicle owners had to have: minimum limits of $25,000 per death/injury, per accident; $50,000 for all injuries/deaths per accident; and $15,000 to cover property damage for each accident. If you don’t have these levels of coverage, you run the risk of paying fines and losing your vehicle registration.

This means you need to verify with your insurance agent that the insurance plan that you want to buy has at least the above dollar minimums. As you visit each insurance company in Memphis, you’ll find quotes that range from as low as $251 up to $676. For the state minimums, these range from $255 up to $696. And full coverage, which protects the driver above and beyond the state minimum, tops out at $1,794.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Memphis by Insurer

You may not be in a position to buy an insurance plan with a hefty annual premium. Even though you may be breaking those premiums up into six or 12 monthly payments, it may still be a stretch for you to make them every month.

If this is you, you can always ask insurance agents about premiums that cost a little bit less. If they know that an expensive premium will make it impossible for you to make the payments, they may be willing to look a little harder.

Use this guide to compare the best auto insurance premiums by company.

Low Cost Auto Insurance for Bad Credit in Memphis

For drivers who have bad credit histories, car insurance plans that allow them to make their monthly payments more easily are available. The least expensive insurance rate for drivers with bad credit comes from Geico General and the most expensive from Allstate P&C.

Use our bad credit guide to find companies that offer lower premiums for bad credit drivers.

Differences Between the Two Main Coverages

Liability Only Insurance Coverage

Liability insurance will pay for the injuries and/or damages that you cause to others in the case of a collision where you were at fault. In most cases, liability insurance will cost less than full-coverage insurance, but then again, they are both very different in what they cover. Liability is mandatory in all U.S. states, although how much liability you are required to have differs between states. Even if it wasn’t mandatory to have liability insurance, accidents can happen anytime and, if they do, you will need to be able to pay for the damages that you cause if you were the one to blame.

What Full Coverage Covers

Full coverage auto insurance in Arizona pays for your injuries and the damages made to your car as well as for others and isn’t just a specific type of a policy but it is instead liability, comprehensive insurance, and collision all combined. Full coverage insurance is not mandatory, but is good to have since it will help pay for your car to be fixed in the event of an accident that causes you injury or damage to your car, even if you were at fault. If the other person that collided with you was at fault, then their insurance will cover the damages to your car and your injuries. This is why there are laws requiring everyone to have insurance to cover the damages they cause.

Top Factors and Differences Between the Types of Coverage

The difference between full and liability coverage is quite dramatic. With liability, insurers gamble that they will only have to pay for one car in an accident. With a comprehensive or full coverage policy, insurance companies know that they are taking on more liability exposure and so their rates reflect the increased risk. In the case of a comprehensive policy, they might even have to cover claims for damages that don’t arise from a traffic incident.

Average Annual Car Insurance Rates in Tennessee by City

Additional cities in Tennessee you can check out.




Tips to Get a Cheaper Car Insurance Rate

Find additional ways to save on your Memphis car insurance premiums with these insurance discounts:

  • Avoid Accidents

    Each time you are at fault in an accident, your insurance company must pay out to cover your liability. Thus, your rates are definitely going to rise any time you cause an accident. The longer you are able to maintain a driving record clean of accidents, the more favorable your policy will be in the eyes of insurance companies.

  • Don’t Speed

    Insurance rates are set relative to the risk you pose as a driver. Since speeding is positively linked to accidents, and thus to insurance claims, your tickets will also result in higher insurance rates.

  • Shop Around

    Insurance is like any other business and so some will charge lower rates in order to gain more customers. Before you purchase a policy from the last company you saw on television, do some homework and determine which policy is the best for you, even if it’s not the least expensive.

  • Comprehensive Insurance Packages

    Typically, insurance companies insure multiple asset types. They write policies for homes, boats, renters, and they can also cover your health. If you package your automobile insurance with your home, boat, and health insurance, you will likely pay a bit less for your car insurance.

  • Multiple Vehicles

    If you have more than one car, combine them on the same policy. The more cars you add, the lower your rates will be on a per-car basis.

Learn more about driver discounts for car insurance rates here.

Common Factors that Affect Your Memphis TN Vehicle Insurance Rates

Your car insurance rate in Memphis is based upon many factors. You will be charged more or less on your policy based upon your age, marital status, and your number of moving violations and accidents. You will also be charged by the carrier based upon the type of vehicle you drive, whether it is paid for or not, and whether you decide that it is cost effective and prudent to have collision insurance or not. Also, insurance agency rates are highly variable, based upon the company and what area of the country you live in. Those in rural areas often pay less, while people in large, metropolitan cities often pay more. Armed with knowledge and by shopping around, you overcome some of these factors and save substantial money each year on auto insurance.

Compare insurance company rates for drivers with a bad record here.

Helpful Memphis, Tennessee Vehicle Resources:

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